Marksans Pharma Ltd. — Annual Report 2019

May 29, 2019

•• Marksans Pharma Ltd.

BSElimited Corporate Relation Department Phiroze Jeejeeboi Towers, Dalal Street, Mumbai - 400001. Scrip Code: 524404

. National Stock Exchange of India Limited Listing Department Exchange Plaza, C-1, Block-G, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051. Symbol: MARKSANS

Sub: Audited Annual Financial Results for the financial year ended 31[st] March, 2019 and Auditors Report thereon.

In terms of Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, kindly find enclosed herewith Audited Annual Financial Results for the financial year ended 31[s][t] March, 2019 (both Standalone and Consolidated) approved by the Board of Directors at its meeting held today i.e. 29[t][h] May, 2019 along with Auditors Report thereon ..

In this connection, we hereby certify that the Auditors have given their reports on the Audited Annual Financial Results for the financial year ended 31[st] March, 2019 (b'oth Standalone and Consolidated) with unmodified opinion.

Yours faithfully, For Marksans Pharma limited

Harshavardhan Panigrahi Company Secretary

Marksans Pharma Ltd.

11th Floor, "GRANDEUR", Opp. Gundecha Symphony, Veera Desai Extension Road, Oshiwara, Andheri (W), Mumbai - 400 053 • Tel.: +91 224001 2000 • E-mail: info@marksanspharma.com www.marksanspharma.com

901/902, Regent Chambers, Nariman Point, Mumbai - 400 021. T: + 91 2243439191 1 + 91 2222832626 F : +91 2222832727 bhutashah.com

BHUTA SHAH & Co LLP CHARTERED ACCOUNTANTS

Independent Auditor's Report on Ind AS Standalone Financial Results of Marksans Pharma Limited, pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

1. We have audited the accompanying statements of standalone financial results of Marksans Pharma Limited (the "Company") for the quarter and year ended 31 sl March, 2019 ('standalone financial results'), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing Regulations, 2015") and SEBI Circular No. CIR/CFD/FAC/62/2016 dated 05 July 2016, as modified.

These standalone financial results have been prepared on the basis of the annual sta~dalone Ind AS financial statements which are the responsibility of the Company's management. Our responsibility is to express an opinion on these standalone financial results based on our audit of such standalone Ind AS financial statements, which have been prepared in accordance with the Indian Accounting Standards and accounting principles generally accepted in India and other relevant requirements of the regulation, as amended from time to time.

1. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Statement is free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts disclosed in standalone financial results. An audit also includes assessing the accounting principles used and significant estimate~ made by management. We believe that our audit provides a reasonable basis for our opinion.

2. Based on our audit conducted as above, in our opinion and to the best of our information and according to the explanations given to us, the Statement:

3. a) is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016; and

4. b) gives a true and fair view in conformity with the aforesaid Ind AS and other accounting principles generally accepted in India of the net profit (including other comprehensive income) and other financial information of the Company for the year ended 31 sl March,

BHUTA SHAH& Co LLP CHARTERED ACCOUNTANTS

1. The figures for the quarter ended 31[s][t] March 2019 and 31[s][t] March 2018 as reported in these standalone financial results are the balancing figures between figures in respect of the full financial year and the published year to date figures up to the end of third quarter of the relevant financial year, which were subjected to a limited review

For Bhuta Shah & Co LLP

Chartered Accountants

Firm Registration No.: 10.1474W/ W100100

Atul Gala Partner Membership No.: 048650

Place: Mumbai, Date: 29[th] May, 2019

901/902, Regent Chambers, Nariman Point. Mumbai - 400021. T: + 91 2243439191 1 + 91 2222832626 F : +91 2222832727 bhutashah.com

BHUTA SHAH & Co LLP CHARTERED ACCOUNTANTS

Independent Auditor's Report on Ind AS Consolidated Financial Results of Marksans Pharma Limited. pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Reguirements) Regulations, 2015

To The Board of Directors Marksans Pharma Limited

• 1) We have audited the accompanying Ind AS consolidated financial results of Marksans Pharma Limited ('the Company') and its 3 subsidiaries (including step down subsidiaries) (collectively referred to as 'the Group') for the quarter and year ended 31[st] March, 2019 ('consolidated financial results'), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing Regulations, 2015") and SEBI Circular No. CIR/CFD/FAC/62/2016 dated 05 July 2016, as modified.

These consolidated financial results have been prepared on the basis of the annual consolidated Ind AS financial statements which are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial results based on our audit of such consolidated Ind AS financial statements, which have been prepared in accordance with the Indian Accounting Standards and accounting principles generally accepted. in India and other relevant requirements of the regulation, as amended from time to time.

• 2) We conducted our audit in accordance with the auditing standards issued by the Institute of Chartered Accountants of India. Those standards require that, we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts disclosed in financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.

• a) We did not audit the financial statements of the subsidiaries (including step-down subsidiaries) located outside India included in the statement, whose financial statements reflect total assets of INR 6,000.46 million as at 31[st] March, 2019, total revenue of INR 2,270.65 million for the quarter ended 31[s][t] March, 2019 and INR 9,292.90 million for the year ended 31[st] March, 2019 as considered in the consolidated Ind AS financial statements. These Ind AS financial statements of the subsidiaries have been audited by other auditors whose reports have been furnished to us by the management and our report on the financial results, including inter alia, amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors.

BHUTA SHAH & Co LLP CHARTERED ACCOUNTANTS

• b) Subsidiaries located outside India, whose financial statements have been prepared in accordance with accounting principles generally accepted in its respective countries and which have been reviewed and audited by the other auditors as applicable, under generally accepted auditing standards applicable in its respective countries. The Company's Management has converted the financial statements of such subsidiaries located outside India from accounting principles generally accepted in those countries to the accounting principles generally accepted in India. We have audited these conversion adjustments made by the Company's Management. Our opinion, in so far as it relates to the balances and affairs of such subsidiaries located outside India, is solely based on the report of other auditors and the conversion adjustments prepared by the Management of the Company and audited by us.

• 4) In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the other auditor on financial statement of subsidiaries, these consolidated financial results:

• (i) are presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI circular No. CIR/CFD/FAC/62/2016 dated 5 July 2016 in this regard; and

• (ii) read with notes thereon, give a true and fair view of the consolidated net profit (including other comprehensive income) and other financial information of the Group for the year ended 31[51] March, 2019.

• 5) The figures for the quarter ended 31[51] March 2019 and 31[51] March 2018 as reported in these financial results are the balancing figures between figures in respect of the full financial year and the published year to date figures up to the end of third quarter of the relevant financial year, which were subjected to a limited review.

Atul Gala Partner Membership No. 048659 Place: Mumbai Date: 29[th] May, 2019. ---

Registered Office'11th Floor Grandeur yeers Desai Extension Road Oshiwara Andheri [West] Mumbai-400053 rCIN:L24110MH1992PLC0663641 Telephone No.: 022-4001 2000. Fax No.:022-4001 2011, E-mail: info@marksanspharma.com AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH, 2019

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STANDALONE CONSOLIDATED
3 MONTHS ENDED YEAR ENDED 3 MONTHS ENDED YEAR ENDED
31.03.2019 31.12.2018 31.03.2018 31.03.2019 31.03.2018 31.03.2019 31.12.2018 31.03.2018 31.03.2019 31.03.2018
Sr. No. PARTICUlARS AUDITED} UNAUDITED (AUDITEOl {AUDITED} AUDITEo\ {AUDITED} UNAUDITED AUDITED' AUDITEo\ (AUDITED)
1 Revenue from Operations 911.84 1,251.89 868.37 4,241.60 2,946.62 2,474.09 2,483.65 1,993.18 10,000.69 9,126.92
2 Other Income 95.02 1.18 0.79 79.30 74.28 97.31 1.57 46.21 94.74
3 T otallncome 1006.86 1 253,07 869.16 4320.90 3020,90 2571,40 2485.22 1993.18 10046.90 9211.66
4 Exnenses
Cost of Material Consumed 451.31 655.12 462.33 2,081.42 1,547.43 721.28 1,321.29 546.86 4,120.57 3,486.63
Purchase of Stock· in- trade 97.00 86.94 51.79 309.07 183.26 452.32 113.60 428.93 1,058.48 1,539.18
Changes in inventories of finished goods, work~in-process
and stock-in-trade (17.13) (3.12) (24.61) (27.09) (37.21) 53.99 (152.92) 85.89 (199.02) 205.46
Employee benefits expense 106.98 126.00 111.40 463.30 458.56 428.02 363.31 381.86 1,590.66 1,477.48
Finance cost 18.41 12.92 25.88 65.62 76.71 24.39 17.56 34.73 96.55 102.20
Depreciation and amortisation expense 22.25 21.92 25.39 86.87 122.51 62.86 50.37 61.92 228.04 268.38
Other excenses 239.86 213.48 160.08 781.60 503.12 661.99 476.50 509.77 2108.54 1634.35
Total EXDenses 918.68 1113.26 812.26 3760,79 2854.38 2404.65 2189.71 2049,96 9003.82 8713.68
5 Profit/flossl before tax f3-4\ 88,18 139.81 56.90 560.11 166.52 166.75 295.51 f56.78 1043.08 497.98
6 Tax expense:
(1) Current Year 19.40 28.44 12.80 121.09 36.20 55.67 50.61 7.25 235.85 133.92
(2) Earlier year 4.95 (7.20) 0.04 4.95 . (7.20) 0.04
(3) Deferred tax 7.60 (6.44) 0.78 10.05 6.02 7.60 (6.44) 0.78 10.05 6.02
Total Tax EXDenses 31.95 22.00 13,58 123.94 42,26 68,22 44.17 8,03 238.70 139.98
7 Profit/floss) for the period 15-6) 56,23 117,81 43.32 436,17 124.26 98.53 251,34 (64.81\ 804.38 358,00
Other ComDrehensive Income/(Loss)
Items that will not be reclassified to Profit or Loss 10.36 0.27 1.95 0.46 1.95 10.36 0.27 1.95 0.46 1.95
Income tax relating to above Items that 'Willnot be reclassified
to Profit or Loss fO.13 10.73 10.13 10.73 fO.13 10.73 10.13 10.73
Items that 'Willbe reclassified to Drofit or loss 10.25 1104.01 68.33 14.31 68.33
Income tax relating to above Items that 'Willbe reclassified to
Profit or Loss
8 Other Comprehensive Income/floss) 10.49 0.27 1.22 0.33 1.22 fO.74 1103.74 69.55 13,98 69,55
II Total CamDrehensive Income far the Deriad 55.74 118.08 44,54 436.50 125.48 97.79 147.60 4,74 800.40 427.55
10 Total Comprehensive Income attributable to:-
Non-Controllina interests . . 12.69 7.21 4.06 39.77 28.61
Ov.ners of the Companv 55,74 118.08 44.54 436.50 125,48 85,10 140.39 0.68 760.63 398.94
11 Paid uo Eauitv Share Capital IFace Value ~1 eachl 409.31 409.31 409.31 409.31 409.31 409.31 409.31 409.31 409.31 409.31
12 Eamincs Per Share of fl each Basic 0.14 0.29 0.11 1.07 0.30 0.21 0.60 10.17 1.87 0.80
Diluted 0.14 0.29 0.11 1.07 0.30 0.21 0.60 10.17 1.87 0.80
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• Notl The rbsults for the quarter ended and year ended 31st March, 2019 were reviewed and recommended by the Audit Commillee and approved by th¢.Board of Directors in it's meeting held on 29th May, 2019. The above results have also been audited by Statutory Auditors of the Com~any which were prepared in terms of Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements), 2015. I

• 2 This itatement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS), prescribed under sectiJn 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable. I

• 3 The Qompany operates in single business segment namely research. manufacturing and marketing of pharmaceutical formulation. 4 The ~oard of Directors, in it's meeting held today, have recommended for the approval of member a dividen~ of ~0.05 per equity share of ~1'each!for the Financial Year 18-19. i !

• 5 The ~gures for the quarter ended 31st March 2019 and 31st March 2018 as reported in these financial results are the balancing figures belw~en figures in respect of the full financial year and the pUbliShed year to date figures up to the end of third quarter of the relevant finan~al year, which were sUbjected to a limited review. I

• 6 Ind A~ 115 'Revenue from Contracts with Customers', mandatory from reporting periods beginning on or after 1st April. 2018, replaces eXisti~g revenue recognition benefit obligation Under the modified retrospective approach. There were no significant adjustment required to the retained earnings as at 1st April, 2018. The adoption of the standard did nol have any material impact on the financials results. ! !

• 7 The fonsolidated financial result includes financial result of subsidiaries (including step-down SUbsidiaries). 8 PreviPus period's figures have been regrouped I reclassified, wherever necessary to make them comparable with the current year. I I I For Marksans Pharma limited I

• Date: 29r May, 2019 Place: M~mbai www.ma~ksallspharma.com !

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STATEMENT OF ASSETS AND LIABILITIES Statement of Financial Position ASSETS	Standalon	e as at	Consolida	(~ in Million) ted as at
	31.03.2019	31.03.2018	31.03.2019	31.03.2018
	AUDITED	AUDITED	AUDITED	AUDITED
Non-current assets
Property, plant and equipment Capital work-in-progress	971.86 -	878.81 -	\,980.82	1,863.68
Intangible assets Intangible assets under development	54.27 -	0.09 -	716.44 -	930.09 -
Financial assets
Ii) Investments (ii) loans	2,360.74	2,360.74	-	-
(iil) Other non- current financial assets	12.92	8.17	12.92	8.17
Deferred tax assets (net)	-	-	12.48	14.54
Other non-current assets	-	-	-	-
Total non-current assets	3,399.79	3,247.81	2,722.66	2,816.48
Current assets
Inventories Financial Assets	703.64	422.93	2,932.46	2,181.24
(i)Trade receivables (iilCash and cash equivalents	1,778.30 18.00	1,688.72 7.14	1,765.97 335.38	1,769.05 398.77
(iii)Other Financial Assets	148.71	146.99	3.27	1.55
Other (urrent assets	71.44	59.28	277.34	154.75
Total current assets TOTAL ASSETS	2,720.09 6,119.88	2,325.06 5,572.87	5,314.42 8,037.08	4,505.36 7,321.84
EQUITY AND LIABILITIES
EQUITY
Equity share capital	409.31	409.31	409.31	409.31
Other Equity
Reserves and Surplus Equity attributable to owners of the Company	4,296.43 -	3,880.40	5,015.51 -	4,299.33 -
Non·ControJ1ing interest	-	-	102.17	95.50
Total equity	4,705.74	4,289.71	5,526.99	4,804.14
LIABILITIES
Non-current liabilities
Financial liabilities
(i)Borrowings	-	-	-	-
(iiJOtherfinancial liabilities	100.00	100.00	100.00	100.00
Deferred tax liabilities (Net)	70.29	60.11	70.29	60.11
Provisions	13.56	10.81	13.56	10.81
Total non current liabilities	183.85	170.92	183.85	170.92
Current liabilities
Financial liabilities
(i)Borrowings (ii)Trade payables (iii)Other financial liabilities Other current liabilities	773.27 372.26 73.37 -	663.09 336.80 87.88	999.09 1,060.69 209.04 -	1,174.13 778.28 100.77 -
Provisions	5.62	3.96	8.38	203.17
Current tax liabilities (Net)	5.77	20.51	49.04	90.43
Total current liabilities	1,230.29	1,112.24	2,326.24	2,346.78
Totalliabllities	1,414.14	1,283.16	2,510.09	2,517.70
TOTAL EQUITY AND LIABILITIES	6,119.88	5,572.87	8,037.08	7,321.84